We invest in stocks of companies that have a compelling strategy for growth, have differentiated products or services that are dominant in their industry, and have a strong balance sheet.
We invest in bonds that have high relative yields and low relative risk.
Portfolios are diversified:
- between stocks across economic sectors
- between asset types: domestic & international stocks, large, mid, and small capitalization stocks, bonds, and cash
Companies are rigorously researched and must show:
- a proven record for revenue, earnings and cash flow
- excellent core competencies and dominance in their industries
- a strong and stable management team
- a clear and strategic direction for long term growth
We purchase companies that are under or fairly valued based on:
- financial ratios such as PE, PEGY, P/S, ROI, ROE
- price multiples and profit margins compared to peer companies
- assessment of core competencies and management performance
- proprietary valuation models